Overall, inflation has been steady in recent months, and on Oct. 12 the Bureau of Labor Statistics reported that the consumer price index rose 3.7% year-over-year in September, the same pace as August.
The committee's 12 members unanimously approved maintaining rates at the current level and said in a statement that they will continue to "take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments" when weighing additional policy firming.
The committee is monitoring the economic implications from rising global geopolitical tensions, including the Israel-Hamas war, and domestic issues, like a potential government shutdown later this month, Powell said.
However, Powell added that the "bigger picture from our standpoint is we've got a very strong economy, strong labor market, making progress on the labor market, making progress on inflation, and we're very focused on getting confident that we have achieved a stance of monetary policy that is sufficiently restrictive."
Shortly after the Nov. 1 announcement, market participants indicated there is a 80% probability that the Fed will leave rates unchanged at its next meeting, according to the CME FedWatch Tool that tracks trading in the 30-day fed funds futures.
The committee's final meeting of the year is slated for Dec. 12-13.